Example 8.1
The information below pertains to the following questions.
ABC reported $356 500 for current assets and $100 500 for other assets. It also had $175 000 of current liabilities. ABC's quick assets totalled $222 000, and its long-term liabilities totalled $105 000.
-Refer to Example 8.1. Determine ABC's quick ratio.
A) 0.79:1
B) 1.27:1
C) 2.04:1
D) 3:22:1

Question

Quizplus · Accepted Answer

quick assets divided by current liabilities, so 222 000 / 175 000 = 1.27:1

Example 8.1 The Information Below Pertains to the Following Questions